NEW YORK – The California municipal market was mostly flat Wednesday amid light to moderate secondary trading activity as participants continued to focus on new issuance.
“It’s busier in the secondary than it was Monday and Tuesday, but it’s still fairly quiet,” a trader in San Francisco said. “People are generally just focused on the primary, waiting to see how we handle the supply. I also think there’s not going to be too much movement in the market until we see what comes out of the [Federal Open Market Committee] meeting week after next.”
The Municipal Market Data’s triple-A scale yielded 2.36% in 10 years Wednesday, matching Tuesday, while the 20-year scale remained flat at 3.36%. The scale for 30-year debt was unchanged at a 3.77% yield.
Wednesday’s triple-A muni scale in 10 years was at 95.2% of comparable Treasuries and 30-year munis were at 96.4%, according to MMD, while 30-year tax-exempt triple-A general obligation bonds were at 107.4% of the comparable London Interbank Offered Rate.
The Treasury market was showed little movement Wednesday. The benchmark 10-year note was quoted recently at 2.48% after also opening at 2.48%.
The 30-year bond was quoted recently at 3.89% after opening at 3.91%. The two-year note was quoted recently at 0.36% after also opening at 0.36%.
The economic calendar was light Wednesday.
Activity in the California new-issue market was light Wednesday.
Previous Session's Activity
The most actively traded security in the state yesterday was taxable Sonoma County 6s of 2029, which traded 60 times at a high of 102.000 and a low of 98.900.
